Financial Analysis Waitrose

Financial Analysis Waitrose

FINANCIAL STATEMENT ANALYSIS
for
John Lewis Partnership plc

The John Lewis Partnership (JLP) is a leading UK-based retailer operating 187 Waitrose supermarkets which represent 3.9 % of the market and 26 John Lewis department stores with 19.1% market share (Annual report, p.1).   The company also owns an expanding service offer besides retail called Greenbee which was launched in 2006. Greenbee offers insurance and financial services as well as telecommunications and travel services (Euromonitor - company, p.1).
As a retailer JLP creates value by reselling quality goods. It has successfully developed a premium niche based on a highly differentiated product offer with strong emphasis on local provenance of fresh food. High service standards and product knowledge among specialist staff deliver an exceptional in-store experience to customers willing to pay a premium for it (Mintel).   Staff is greatly motivated by JLP’s individual corporate structure. “The partnership aims to ensure everyone who works for it enjoys the experience of ownership, by sharing in the profits and the decision making” (Annual Report).   Employees are highly valued at JLP which reflects in the partnership bonus worth 20% of salary they received in 2008 and the leisure centres available for them. (Annual Report,   p.2) The company is constantly expanding; it is no longer purely a southern retailer since acquisition of stores from Morrison’s gave it a presence in the North for the first time. Entry into Scotland in 2006/07 paves the way for a raft of further openings (Mintel). The company spent £180 million in 2007 on capital expenditure, refurbishing and upgrading existing stores. It is also set to open five new department stores by 2013 (Euromonitor - company, p.10).

I will further assess the strategic position of the company within the UK retailing sector using a SWOT analysis. As general strengths of JLP are its strong brand equity and its firm portfolio of organic foods.   However, its...